Costs hit Fannie, Freddie

October 30, 2008 10:17AM

Despite the federal government’s September takeover of mortgage giants Freddie Mac and Fannie Mae, costs are still rising for the two companies — a cost that is passed on to mortgage borrowers. Fannie Mae has said it will write off nearly $20.6 billion in tax credits on its books, resulting in a huge loss of profit. The average rate for 30-year loans from the two lenders was 6.64 percent on Wednesday, up moderately from 6.34 percent on September 5, right before the Federal Housing Finance Agency took control of them.

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